Mercedes F1 team see profits fall UK£6m in 2023

• Turnover increases 15% YoY to UK£474.5m
• Cost of sales rises to UK£413.6m, an 18% increase
• The team’s share of television coverage falls 14.7% in 2023

The Mercedes Formula One team have seen their net profit fall UK£6 million (US$7.5 million) in their recently released accounts for the year ended 31st December 2023.

The team’s profit fell from UK£89.7 million (US$109.2 million) in 2022 to UK£83.8 million (US$104.6 million) this year, though still a considerable margin when compared to the rest of the grid.

For context, the Alpine Formula One team were the closest challengers to Mercedes’ profit levels with UK£26.2 million (US$31.9 million) in 2022.

Turnover remained strong for Brackley-based Mercedes, with their status as an automotive manufacturer continuing to provide a financial advantage.

In 2023, turnover increased 15 per cent year-over-year (YoY) from UK£474.5 million (US$577.7 million) to UK£546.4 million (US$682.2 million).

Despite the considerable increase in turnover, an 18 per cent YoY increase in cost of sales saw overall profits fall. The team’s cost of sales rose to UK£413.6 million (US$516.4 million).

Other factors included the team's decline in television coverage, with a fall of 14.7 per cent in 2023 caused by the lower number of podiums achieved compared to 2022.

The team claims its Advertising Value Equivalent (AVE) sits at US$5.3 billion, while the team welcomed seven new commercial partners during the season, which contributed to its increased turnover.

As part of the accounts, the team has also revealed how it is tracking against its emissions targets, having achieved a 67 per cent emissions reduction during the European leg of last season.

However, while energy consumption fell from 19.5 million/kWh in 2022 to 19.3 million/kWh in 2023, the total gross tCO2e generated increased five per cent YoY from 3,847 to 4,050.

Mercedes blames this on the increased electricity consumption of the team and the fact that 'the location-based emissions factor provided by the UK Government GHG Conversion Factors for Company Reporting increased slightly'.

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